August
6, 2004
National
Pharmacare - Political Trick or Medicare's Salvation?
Just
because Gordon Campbell is credited with an idea doesn't mean
it is bad, although one is hard pressed to find many good
examples, and many will remember that what Campbell has done
bears little or no resemblance to what he campaigned on. Nevertheless,
it would be very good if the federal government took responsibility
for delivering a national Phamacare program based on the BC
model, and better yet if that model was the version before
the Campbell cuts. Roy Romanow has been quoted as saying the
chances of that are "slim and none". He shouldn't
be in such a rush to shield the federal government.
The history
of the development of Medicare in Canada has seen the federal
government using its superior taxing power to offer funding
to the provinces, which have constitutional jurisdiction in
health care. The provinces have gotten the short end of the
stick since they take all the risks of managing ever expanding
programs while the federal government gradually withdrew its
funding. In the case of national Pharmacare, the provinces
have pointed to the fact that Ottawa has control over the
Patent Act and control over what drugs are approved for dispensing.
Since it controls powerful policy tools that can be used for
cost containment, wouldn't it be better for it to take full
responsibility for a program rather than offering a little
money and then watching the provinces struggle to control
costs?
British
Columbians know that Premier Campbell cannot be taken at his
word. He received credit for the proposal that originated
with the Canadian
Federation of Nurses, so those who are used to seeing
broken promises and the use of tricky words are looking for
the substance behind the premiers' plan. Rather than raising
coverage across the country to the level offered in BC, the
plan might be for "catastrophic coverage" and nothing
more. In other words, the plan might encourage Ottawa to cover
expenses in excess of $10,000 while provinces cancel their
coverage for anything less than that. That would be a major
step backward. Campbell has a lot of explaining to do to satisfy
skeptics that his proposal is a sincere effort to expand Medicare
rather than a cheap political trick to dump on Ottawa while
further cutting provincial spending.
People
who need prescriptions have a real problem. It is not good
enough to watch the blaming game as the provinces and Ottawa
point fingers at each other. Drug costs are the fastest rising
component of health care. Total expenditures on prescription
drugs now exceed the amount that is paid to physicians, and
are second only to hospital costs. The provinces have responded
by shifting drug costs onto the people who need prescriptions.
Even after shifting costs, BC
predicts that its Pharmacare program will expand at double
digit growth rates. In the long term, no program can consistently
outpace the growth in government revenue; that is not sustainable.
Many physicians
and health economists are quick to point out that people,
particularly seniors, are admitted to hospital suffering the
consequences of bad prescribing. Many prescriptions are unnecessary,
counter productive or inefficient (less expensive alternatives
exist). Pharmaceutical companies spend tens of thousands of
dollars on every physician in the country in order to influence
their prescribing habits, not to improve health, but to improve
their bottom lines.
Patients
have a problem if a user fee forces them to question whether
or not to fill a prescription. Either the drug that their
physician prescribes is necessary or not. Why should a patient
second guess their physician based on a user fee? If the drug
that is prescribed is not necessary, the physician should
be educated. If it is necessary, every effort should be made
to ensure that there are no deterrents to filling it. Rather
than shifting drug costs onto those who are sick, cost control
for pharmaceuticals must start with proper prescribing habits
for physicians, and that means countering the enormous pressure
put on physicians by the pharmaceutical industry.
Only Campbell
knows whether his proposal is intended to play political tricks,
shift blame and further cut programs, but at its best it could
be a very good idea for putting the responsibility for pharmaceuticals
on the level of government that has the most power to deal
with the pharmaceutical industry. The provinces, most recently
British Columbia, have shown that they don't know the difference
between cost control and cost shifting. When provinces can't
control drug costs, it is not much of a solution to make sick
people bear the burden. It would be a major step in the right
direction to support Ottawa in an effort to expand Medicare
while taking on the power of the far too powerful drug industry.
Australia
doesn't allow drugs to be introduced unless they can be proven
to be more cost effective than what already exists. The United
Nations' essential drug list is far shorter than the list
of what the pharmaceutical companies market. There are alternative
models for controlling drug costs while protecting health
care. It is time that Canada stopped the federal-provincial
fighting, and took a real step to expand and protect Medicare.
That starts with a combined federal-provincial effort to control
the pharmaceutical industry.
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